Does the B Bops non-compete apply to businesses 'directly' similar to a B Bops Restaurant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Developer hereby agrees that during the term of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant, except for any Unit owned and operated by Developer pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- C.
For purposes of this Section 12, a business shall be deemed the "same as or substantially similar to a B-Bop's Restaurant" if the business is engaged in preparing and serving to the public any food items included from time to time as a standard menu item for a B-Bop's Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the non-compete agreement applies to businesses that are either the 'same as' or 'substantially similar' to a B Bops Restaurant. This restriction is in place both during the term of the Development Agreement and for a period of two years after its termination or expiration.
During the term of the agreement, the developer, along with their directors, officers, shareholders, partners, members, principals, or agents, cannot directly or indirectly engage in any business that is the same as or substantially similar to a B Bops Restaurant. The only exception to this is for any B Bops unit that the developer owns and operates under a Unit Franchise Agreement with B Bops.
Post-termination, for two years, the restriction continues within the Trade Area or within a 20-mile radius of any operating or under-construction B Bops Restaurant. A business is considered 'the same as or substantially similar to a B-Bop's Restaurant' if it prepares and serves any food items that are part of B Bops' standard menu.